As had been anticipated by our management group, Bermuda experienced another decline in air arrivals. Despite this setback BAS was able to increase sales by 7.5% to $13.0 million, and during the same period increase operating income by 87% to $1,168,000. Net income for the year at $992,278, was 71% higher both are record results for BAS Ltd.
There were several initiatives that contributed to these results not least of which was our first full year of contributions from Crow Lane Bakery. Also, our new bar facilities which were under construction at the end of last year, were opened in December, and the company's new executive jet facility came on line in February, the positive performance from these divisions along with admirable showings from all existing operations helped raise the earnings per share 74% to $0.94. Dividends per share were also 25% higher during the period.
In our continuing effort to strengthen the company, BAS acquired the small but successful business of Mid Atlantic Aviation during this fiscal year. Mid Atlantic has operated at the Bermuda Airport since 1992 carrying out the business of passenger service and private jet handling. These services were also being provided by BAS, therefore no additional infrastructure or overhead was required to carry out the additional activities. In June the company will also open a retail outlet on Church Street in the Washington Mall to support our bakery operation. Both these initiatives are small, but very significant in our efforts to broaden the company's operations and ensure consistent and sustained profitability. Although our airport operations will always be our core business, it is our opinion that we should, with calculated determination, build or add complementary businesses for such eventualities as the inevitable downturns in this cyclical business. But of equal importance, it will position the company so it can capitalise on any positive swings that take place in tourism, aviation, or for that matter, Bermuda in general. It should be noted that although our airport operations showed improved profitability this last year, revenues in those divisions were 3% lower.
It is refreshing to note that the performance of BAS over the last two years has spurred renewed interest in the company. Our share price, which closed out 1997 at a price of $3 5/8, was trading at $5.00 at the end of this year, having traded as high as $5 1/4. And whilst we cannot predict future performance our management team see the coming year as "another year of opportunity for the company". The same optimism is not there for tourism as we have calculated that there will be no appreciable difference in the number of seats into the island. From our prime market of North America there will be considerable less. This along with the shrinking inventory of beds in Bermuda makes the task of rebuilding our tourism industry a formidable one.
As reported last year, there was a significant outlay for capital projects. We can report that all major items slated for purchase, or works to be carried out were completed, including upgrades to our information systems. The final phase will be software changes and an audit to ensure millennium compliance. Upon completion, we will be better equipped to execute our business and better able to manage and utilize customer and client information to their benefit.
On behalf of the Board of Directors I would like to again thank our staff, for without their help we could not have achieved our current level of success. They have made the difference in providing a safe and consistently high level of service to our customers. Our management team also deserve special recognition for their vision, creativity and dedication during these very challenging times. To you our shareholders, please know we very much appreciate your unfailing support. It has given us the desire to attain what we believe is our most significant achievement as an organisation. That is, to have built a basis on which our company can continue to grow, provide full employment for our staff and justify your investment in BAS.